Sustainability in the Chilean Wine Industry

Down to Earth – New World @ ProweinSustainability Seminar 23rd March 2010

DE MARTINO:

• First ‘Cradle-to-retail’ CO2 neutral winery in S-America

• Commercial opportunity: NUEVO MUNDO

CHILE: • Impact of Climate Change

• Sustainability Management in Chilean Wine

• 117.000 Ha (2007 SAG)

• 9,86 million HL (2009 SAG)

• Highly dependent on exports (70%) 6,93 million HL 1,38 billion USD

• Key driver of Chile’s country image

THE CHILEAN WINE INDUSTRY

IMPACT OF CLIMATE CHANGE

Increase in T: 1-1,5ºC until 2050; 2-4ºC until 2100

30% Decline in precipitation; increase of extreme weather events

IMPACT OF CLIMATE CHANGE

MITIGATION OF CLIMATE CHANGE IMPACTS

Water Management:• Irrigation• Capture• Storage• Treatment/reuse

R&D: • Technological adaptation • Genetic selection of heat/ drought resistant varieties

Vineyard practices: • Move vineyards south and to higher altitude;• plague control• drip irrigation• harvest dates• grape variety selection

Public policy:• Interdisciplinary task forces• more studies and measurement • promotion of renewable energy• planning of land and water use • education

SUSTAINABILITY MANAGEMENT: MACRO

Chilean Wine Industry Sustainability Code (in development):

• Benchmarking (Vineyard, Winery/Offices, Social/local Environment)

• Best Practices Manual

• Management Tools for self-evaluation:

International Protocol for GHG Calculations in the Wine Industry (International Wine Carbon Calculator)

BEST WineryISO 50001

SUSTAINABILITY MANAGEMENT

BEST PRACTICES IN SUSTANABILITY MANAGEMENT

SUSTAINABILITY: THE FUTURE

ISO 26000Sustainability as a competitive advantage and driver of innovation

• Family owned; 300 ha Organic vineyards

• First winery in the world to sell Carbon Credits

• First certified ‘cradle-to-retail’ Carbon Neutral winery in South America

• Best example of water management in the Chilean wine industry

BEST PRACTICE : DE MARTINO

BEST PRACTICE : DE MARTINO

300 Ha BCS Ökogarantie Certified Organic (2000)

DE MARTINO: Organic Viticulture

Biological Pest Control

DE MARTINO: Organic Viticulture

Composting 3000 m3

DE MARTINO: Organic Viticulture

Drip irrigation and cover crops

USD 1,5 million WWTP (UNFCCC)58 MM ltrs 30.000 tCO2e reduction p.a.

World’s first winery to sell carbon credits

DE MARTINO: Water Management/Climate Change

Xtreme Sustainability Project (2008)

Cradle-to-retail Carbon Audit (2009)

NUEVO MUNDO: First Organic and 100% Carbon Neutral Wine brand from South America:

Organic terroir wines (Isla de Maipo)Minimum environmental impact Certified Carbon NeutralPET, BIB or glass

DE MARTINO: Innovation & Education

Jacques Wein Depot (D)

Dansk Supermarked (DK)

Gal & Gal (NL)

………… (UK)

………… (B)

…

DE MARTINO: NUEVO MUNDO

2010:

ALL De Martino wines certified CO2 Neutral (Carbon Reduction Institute)

DE MARTINO: First Carbon Neutral Winery in South America